Ahmad Zaki Resources Bhd (AZRB), whose listing has been transferred to the KLSE main board, is looking to leverage on its forte in civil engineering and construction to beef up its non-core activities such as property development and bunkering jobs.
Managing director Wan Zakariah Muda said that in the near term the company planned to develop mixed residential property projects in joint venture with a number of landowners it had identified.
We have submitted proposals to embark on a number of residential property projects to relevant parties but it is too early to disclose the details, he said after the listing transfer ceremony in Kuala Lumpur yesterday.
AZRB, via 60%-owned Kemaman Technology Industrial Park Sdn Bhd (KTIP), is developing a 300-acre site in Kertih into a mix of industrial park, commercial and light industrial estate, and housing area.
The other 40% of KTIP is owned by state-run Lembaga Tabung Amanah Warisan Negeri Terengganu.
We have almost completed the earthworks, Wan Zakariah said of the AZRBs maiden property project, which was previously put on hold due to the economic downturn.
Development of the KTIP project would be spread over 10 years, Wan Zakariah said.
He added that the project would generate significant recurring income for the group as development costs would mainly centre on material and delivery expenses.
KTIP had paid a nominal sum for the land, he said.
He also said the company would expand its oil and gas division to undertake downstream activities, especially in maintenance and engineering services.
AZRB has been a dealer for bunkering fuel and marine lubricants for 10 years. Its oil and gas division currently accounts for up to 40% of group revenue.
On AZRBs core business, Wan Zakariah said the company was bidding for a RM300mil highway project in India, and was looking at entering the Middle East infrastructure development market, targeting Bahrain, the United Arab Emirates and the Gulf states.
On the local front, AZRB, which now has an order book worth RM650mil, is bidding for new projects worth RM500mil.
Wan Zakariah said 60% of the projects were in the public sector and the rest in private sector.
Of our total order book value, RM400mil is the value of outstanding projects and RM250mil the value of projects in hand but still subject to the issuance of letter of award, he added.
AZRBs flagship projects include the Paroi Stadium in Seremban, Kelana Jaya Stadium in Petaling Jaya, Universiti Teknologi Mara campus in Kelantan and Bukit Jalil Sports Complex. Its other projects are Yayasan Islam Terengganu building, Wilayah Persekutuan Mosque in Jalan Duta, KL International Airport mosque in Sepang, Ampang Hospital in Pandan Indah and infrastructure work packages in Putrajaya.
AZRB shares opened on the main board unchanged at RM2.80 and ended the day at RM2.70 on volume of 494,500 units.
Did you find this article insightful?